Foreign Money Helping to Fuel Canada’s Condo Boom?

The number of Canadian condominiums owned by foreign residents in Vancouver, Toronto and Winnipeg rose over the past year, the Canada Mortgage and Housing Corp. says.

Is Foreign Money Helping to Fuel Canada’s Condo Boom?

CMHC released a survey Thursday that says in Toronto, the rate of foreign ownership rose to 3.3 per cent this year, up from 2.4 per cent the year before. The rate of foreign ownership in Winnipeg’s condo market rose to 2.7 per cent, a jump from 0.1 per cent last year.

In Vancouver, foreign buyers owned 3.5 per cent of condos in Vancouver in 2015, up from 2.3 per cent last year. That’s the highest rate of all 16 metropolitan areas tracked in the agency’s research.

The survey sheds some light on what has been a politically charged issue, particularly in British Columbia.

CMHC says more information is also needed about what is motivating foreign buyers. For example, some may be purchasing properties to house their families, while others may be seeking revenue, either by renting the property out or by selling it when its value increases.

CMHC conducts the survey by asking property managers how many condo units in their buildings are owned by people whose permanent residence is outside of Canada.